Accountancy, asked by Abhijit123, 1 year ago

how the average stock level is ditermined


dimpy215: thanks

Answers

Answered by dimpy215
1

Average Stock level shows the average stock held by a firm. The average stock level can be calculated with the help of following formula.

Average Stock Level = Minimum Level + (1/2Re-order Quantity)
OR
Average Stock Level = (Minimum Level + Maximum Level)/2

IllustrationRe-order quantity = 2000 units
Minimum Level = 500 units
Average stock level = ?

Solution,
Average stock level = Minimum level + 1/2 x Re-order quantity
= 500 + 1/2 x 2000
= 500+ 1000
= 1500 units.

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Answered by Badboy01
2
i think u got that so no need of that....
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dimpy215: nothing
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